Home Sweet Home Team's Real Estate Blog

Posts Tagged ‘Tax Credit’

The amount first-time buyers can withdraw from their RRSPs for a down payment has been increased from $20,000 to $25,000, the first major change to the RRSP homebuyers plan since it was introduced in 1992.

Residential real estate is a key sector of the economy, and these measures are intended to spur activity by getting people to spend both on purchases and upgrades

Last week’s budget also included some tax relief for first-time homebuyers. This includes a credit of up to $750 to cover closing costs, such as legal fees, title insurance and deed transfer taxes. This credit covers 15 per cent of eligible closing costs, up to a maximum of $5,000.

IF YOU’VE been planning a home renovation, but keep putting it off, this is the year to move forward. The home renovation tax credit announced last week offers a 15 per cent tax credit of up to $1,350 for eligible renovations to home or cottage.

In addition to major undertakings like a new kitchen or bathroom, the credit can also be applied to projects like a new furnace or water heater, or a resurfaced driveway. Items like new furniture, appliances or home electronics would not be covered.

The total cost has to be in excess of $1,000 and the credit tops out after $10,000 – the 15 per cent credit is applied to the amount between the $1,000 minimum and $10,000 ceiling, hence $1,350. It’s a non-refundable credit, which means it will reduce your taxes owing, but you don’t get the cash if you have a positive balance.

You can do the work yourself, or hire someone else. However, you can’t hire close friends or family members unless they have a GST number. Any member of the family can claim the tax credit, or it can be shared among family members. The materials and labour for the project must be purchased before Feb. 1, 2010.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Calgary Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.